TORONTO, ONTARIO -- (Marketwire) -- 01/17/13 -- Carpathian Gold Inc. (TSX: CPN) (the "Corporation" or "Carpathian") is pleased with the significant achievements made during 2012, one of which will result in the transformation of Carpathian into a gold producing company by the second half of 2013, with annualized production forecasted to be in the order of 100,000 ounces of gold per year. The Corporation hosts a large gold plus copper resource base of measured plus indicated resources that totals 8.1 million ounces of gold (inclusive of proven and probable reserves of 830,000 ounces) and 1.4 billion pounds of copper (see details at the end of this press release) from its two wholly owned assets: 1) Riacho dos Machados Gold Mining Project (the "RDM Mine" or "Project") in Brazil and; 2) the Rovina Valley Gold-Copper Project in Romania. This resource and reserve base provides the means for the Corporation to achieve its goal of becoming a gold producer in 2013 and, with its current asset base advance itself towards a gold production profile of a significant mid-tier mining company.
Despite 2012 being another year that saw unsettled and turbulent markets, especially for gold mining and exploration equities, the Corporation was able to substantially advance its projects as a result of its cash position, as well as the arrangement of a senior debt loan facility with Macquarie Bank Limited ("Macquarie Bank") dedicated to the development and construction of the RDM Mine.
Some of the Corporation's achievements in 2012 are described below.
RDM Mine, Brazil:
-- Commenced the construction and development of the RDM Mine.-- As at December 31, 2012 the development of the Project that will mine 7,000 t/d of ore from an open pit operation and will treat ore utilizing a standard crush, grind and CIL processing facility, was approximately 60% complete. The Project development remains on track for production in the second half of 2013 at an annualized rate of approximately 100,000 ounces of gold for an initial period of +8 years.-- All major contracts were finalized and signed and the delivery of the crushers, grinding mill and mining equipment was completed.-- Senior debt project financing with Macquarie Bank was increased to US$90 million to complete the construction of the Project that has a projected initial capital cost of approximately US$160 to US$165 million. All documentation finalizing the debt facility was signed on January 11, 2013, with expected drawdown of the facility to commence by the end of January 2013.-- A 5,720 metre exploration-drilling program was completed to evaluate on- strike near surface mineralization both to the north and south of the RDM open pit. These targets are a short distance from the crushing operations so that any new, economically viable, mineralized zone could easily be trucked to the processing facility that has a capacity of 9,000 t/d. The exploration program included soil geochemistry, rock- float sampling, trenching, auger drilling, and diamond core drilling. Three targets north and one south of the mine were drill tested while several additional targets were scout drilled through drilling activity that was completed by the end of December 2012. Assay results are still being received for the latter part of the drill program and completed results to date from this program are currently being evaluated and interpreted. Some highlights from results received to date include the following:-- Cinco Mil Target (less than1 km north of the pit) -- Trench TRCM1 with 11 metres (m) at 3.23 g/t Au -- Diamond drill hole FCM-13 intersected 11 m with 4.10 g/t Au (0-11 m hole depth, located below TRCM1)-- Manguinha Target (2 km north of the pit) -- Diamond drill hole FMG-05 intersected 11 m with 1.02 g/t Au (14-25 m hole depth) -- Diamond drill hole FMG-07 intersected 8 m with 1.34 g/t Au (31-39 m hole depth)